What's the best performing sector this year that almost nobody owns?
Energy. Up 20% YTD while the S&P is flat and tech is negative. Yet the average portfolio has less than 4% allocated to the sector.
XLK (Tech)
36x
Trailing P/E
XLE (Energy)
22x
Trailing P/E
YTD
Forward P/E
XLE (Energy)
+20%
17x
SPY (S&P 500)
+1%
22x
XLK (Tech)
-2%
36x
Energy (XLE) vs Tech (XLK) vs S&P 500: 2026 YTD
Energy's best start in over two decades — yet the sector represents just 3.3% of the S&P 500. Short interest sits near decade highs. Meanwhile, Mag 7 AI capex is approaching $690B this year, and all those data centers may need significant power to run.
Ways To Express This View
Growth
4 YR / XLE / ~110% upside% - uncapped / 20% Hard Buffer
